Reuters Beijing on the 14th, devaluation, or the already oversupply of global commodity markets hit again, this time due to unexpected move of the tales of the chances of China from the world's largest coal importer to a net exporter .
This global coal prices will not help. Coal prices have been the lowest point in nearly 10 years.
Such a reversal is not the first time. China was one of the world's largest thermal coal exporter, until around 2004, when the domestic demand surge helped drive demand for imports.
Because other major producers had expected the currency to fall against the dollar, while the yuan remained strong, thus weakening the competitiveness of Chinese exports, the outside world predicted that China will continue to import coal.
But faced with a series of weak economic data, China this week announced that the RMB devaluation will lead to China an unfair export advantage of condemnation. China's central bank [microblogging] that basis the continued depreciation of the RMB exchange rate does not currently exist, but the market is still expected could fall.
"A week ago, people still say China may become a net exporter of little hope ... Now, people are rethinking this issue, and that this thing is likely to happen within five years," Macquarie Bank analyst Stefan Ljubisavljevic said.
"If the domestic industry protectionist sentiment warming, and the continued depreciation of the renminbi, which may even happen sooner."
2015 China's coal imports have fallen sharply, because the government worried about the impact of coal-fired power generation on the environment, and want to financially troubled domestic coal miners to help.
China's coal industry to meet about 65% of domestic primary energy (primary energy) needs, providing jobs of nearly 6 million. Electricity, cement and steel industries slowed, and action has been brought against the haze rule to the industry.
The main objective ** **
"Their main objective is to make the domestic coal industry first station more stable, but if some progress in this regard, but after the devaluation export and feasible, then the (export) the possibility certainly be more than a week before," Ljubisavljevic say .
Potential export markets could include major coal importing countries: Japan, India and South Korea.
However, this week's devaluation alone is not expected to suddenly release large amounts of exports.
Everbright Securities (24.31 0.11 0.45%) of the Tang Jiabin said that devaluation has little effect on coal exports, China's coal exports relative to imports can be described as insignificant; however, due to the higher price of coal will import, it touches you can relieve domestic producers downward pressure on prices.
Wang Fei Hua futures industry analysts pointed out that "from the price point of view, devaluation may lead to domestic coal prices rose slightly a bit, so it would be beneficial overall. The impact will be a gradual process."
Indicators European API2 coal futures fell Thursday to its lowest level for nearly 10 years $ 53.90 per ton.